THE WORLD BANK
What Is IBRD?
The International Bank for Reconstruction and Development (IBRD) works with middle-income and creditworthy poorer countries offering loans, guarantees, risk management products, and analytical and advisory services. IBRD borrowers include countries at widely different stages of development, from emerging markets, such as Mexico and Indonesia, to countries struggling to nd a foothold in the global economy. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benet of its 187 member countries. IBRD raises most of its funds on the worlds nancial markets. The income that IBRD has generated over the years has allowed it to fund development activities as well as to ensure the nancial strength that enables it to borrow at low cost and offer clients good borrowing terms.
IBRD
From water supply and sewerage in Costa Rica, to revenue administration in Bulgaria, training teachers and providing textbooks in indigenous languages in Guatemala, and strengthening telecommunications regulation in Pakistan, IBRD is working with countries to help them achieve inclusive and sustainable growth. IBRD has helped millions of poor people gain access to jobs, markets, and social services; helped provide them with essential services such as water, electricity, and roads; and worked with governments to improve governance and public nancial management.
IBRD WORKS FOR DEVELOPMENT
Developing countries are becoming key poles of growth in the global economy. Investing in development is an investment in global prosperity and jobs. Almost two-thirds of the worlds poor people live in middle-income countries. Even fast-growing, emerging economies still have large numbers of poor people and real challenges to be tackled in meeting the Millennium Development Goals (MDGs). Many middle-income countries still face large development challenges and risk being trapped in the middle-income status. Working with IBRD, they can pursue development solutions to help them move to the next level. Some countries use IBRD financing as a means to innovate and experiment with small projects, which they then adapt, customize, and scale up. Others use IBRDs global knowledge to help build institutions, legal frameworks, and capacity for managing a mod ern, globalized economy. Middle-income countries are critical to efforts to tackle global challenges, from infec tious diseases to climate change. Middle-income countries are important markets for and sources of development ideas for both the poorest countries and advanced economies.
IBRD AND THE FINANCIAL CRISIS
IBRD was able to respond with strength and speed when the nancial crisis rst hit, and when its clients needed it most. IBRD played a key role in contributing to opportunities to boost global growth and economic recovery in several countries. It delivered a record new commitment of almost $33 billion in scal 2009, almost tripling the previous years level, followed by another record $44.2 billion in scal 2010, putting it on track to deliver on the commitments it made to the G20 in spring of 2009. This support included safety nets for the poor, infrastructure to create jobs and build a foundation for recovery, agriculture to support small farmers, and micronance to help small and micro enterprises.
IBRD IS ABOUT MORE THAN JUST FINANCING
For many countries, IBRD is less a source of nancing than of knowledgeproviding an opportunity to learn, customize, and develop the capacity of their own institutions. IBRD provides a range of services competitive financial products, knowledge and learning services, including through South-South exchanges, and technical assistancethat countries can combine in ways that best meet their needs. It provides countries with access to global expertise and experience about what has worked elsewhere and what has not. Knowledge from Asia can be connected to challenges in Africa, and policy makers in the Arab Republic of Egypt can link up with counterparts in Brazil dealing with the same issues. In turn, countries working with IBRD help the organization develop new products and new ways to tackle development challenges; that innovation can help meet the demands of a fast-changing and competitive global economy. Through partnerships with IBRD, countries are working to strengthen governance and management of public funds; protect the poor and vulnerable; provide health, education, and water and sanitation to poor people and underserved regions; invest in infrastructure to spur growth and connect the poor to opportunities; tackle global challenges such as HIV/AIDS and climate-friendly growth; and encourage the private sector to create jobs and opportunities for millions of people.
International Bank for Reconstruction and Development
WORKING WITH COUNTRIES TO BUILD INCLUSIVE AND SUSTAINABLE GROWTH
IBRD partners with countries to Invest in infrastructure to spur growth and connect the poor to opportunities
ENERGY
In Indonesia, more than 25 million people gained access to household electricity between 1991 and 2003. In Pakistan, local hydropower generation increased from about 35 percent to 46 percent of total generation in 200304, providing increased access to electricity. In the Philippines, about 5 million residents of Bicol, who had suffered power shortages because of typhoons, benefited from a stabilized power supply in 2008. In Turkey, an additional 4.6 million households received an improved power supply through improvements to transmission capacity and efficiency.
IBRD HAS SUPPORTED COUNTRIES
In Transportation, results from projects that were completed between 2007 and 2009 indicate that: More than 40,000 kilometers of roads have been constructed or rehabilitated 40,000 kilometers of roads have been repaired or maintained Transport sector manage ment has been strengthened through the implementation of policy measures to improve governance, trafc safety, and private sector involvement In Water Supply and Sanitation, over the last decade: More than 20 million people have gained access to water Approximately 10 million people have gained access to sanitation More than 100 million people have beneted from improved water resource management, pollution reduction, ood control, and regulation of ground and surface water
ROADS TO LINK TO MARKETS, SERVICES, AND OPPORTUNITIES
In India, 1,900 kilometers of roads were constructed or upgraded in Gujarat, cutting travel times by 10 percent, increasing funds for regular road maintenance by 20 percent, and increasing employment from 26 percent in 2000 to 33 percent in 2007. In Bihar, 1,900 kilometers of the national highway network were renovated, and 3,432 kilometers of roads were refurbished from 2006 to 2009. In Kazakhstan, transport costs on the Almaty-Astana road declined on average by 40 percent, and the accident rate between Almaty and Karaganda was reduced by more than 20 percent from 1999 to 2007. In Lebanon, more than 3,000 kilometers of roads and more than 250 kilometers of retaining walls were constructed, and more than 15,000 streetlights were installed from 2000 to 2008. In Peru, more than 15,000 kilometers of rural roads were rehabilitated between 1995 and 2006.
CONNECTING TO WORLD MARKETS
In Belize, upgrading the link between the capital city of Belmopan and the international airport cut vehicle-operating costs by 62 percent and almost doubled road usage during 200205. In Lithuania, the rehabilitation and extension of more than 2 kilometers of breakwaters from 1999 to 2007 has improved the competitiveness, safety, and environment of the Port of Klaipda. In Papua New Guinea, rehabilitation of the Port of Rabaul, following the eruption in 1994, allowed international cargo to be shipped again directly to and from the port by 2007.
WATER AND SANITATION
In Northeast Brazil, about 650,000 families received electricity, and more than 800,000 families received access to a water supply, from 1993 to 2005. In Lebanon, 300 kilometers of storm drainage network were improved, along with 28 kilometers of the potable water network and 36 kilometers of the sewerage network, from 2000 to 2008. In Morocco, during 200506, slum upgrading and social housing helped more than 60,000 households.
International Bank for Reconstruction and Development
In Paraguay, 325,000 people in rural areas25,000 of them members of indigenous communitiesgained access to water and sanitation through the construction and expansion of 600 water supply schemes and the provision of 23,000 latrines. In Uzbekistan, more than 1 million people have directly benefited from water supply improvements.
TELECOMMUNICATIONS: ESSENTIAL TOOLS IN THE MODERN ECONOMY
In Morocco, the mobile phone market grew to 7.3 million users in 2003, from less than 117,000 in 1998, with the introduction of competition, creation of an independent regulator, and regulatory reform. In the Organisation of Eastern Caribbean States, the worlds first regional telecommunica tions regulator successfully promoted fair competition, regulatory harmonization, universal service, fair pricing, and access to advanced services. The number of connections as a percentage of the population is four times higher than the average for small states.
IBRD partners with countries to Improve the business climate and create the conditions for private sector growth
In Guatemala, the time required to register a new business was cut almost in half, from 45 days to 22 days, during 200408. In the former Yugoslav Republic of Macedonia, the time to register a company fell from 48 days in 2006 to only 4 days in 2009. The cost of registering a business was reduced to less than 50, and the number of registered companies increased by 6 percent in the first half of 2008. In Mauritius, unemployment declined from 9.5 percent in 2005 to 7.2 percent in 2008, as a result of the governments reform program, and the unemployment rate for women decreased significantly as new job opportunities emerged in the service sector. In the Russian Federation, the average customs clearance time at the border in project posts was cut by 43 percent.
FINANCIAL SERVICES, INCLUDING JOB CREATION
In Algeria, work on mortgage finance almost doubled the supply of new and renovated housing over five years and increased housing loans by more than 60 percent. In Armenia, US$25 million in lines of credit were issued to small and medium enterprises, and 3,000 new loan accounts were created during 200910. In Belize, more than 1,700 micro enterprise loans worth US$1 million were disbursed between 1997 and 2003. In the Arab Republic of Egypt, the volume of mortgage lending increased from 300 million Egyptian pounds to 4.2 billion Egyptian pounds in just five years as a result of mortgage sector reforms, which included the creation of a mortgage finance regulator and the streamlining of property registration procedures.
LAND TITLING AND REGISTRATION: KEY TO A FUNCTIONING SYSTEM OF PROPERTY RIGHTS AND ACCESS TO CREDIT
In Croatia, the backlog of property registration cases was cut by more than 80 percent from 2003 to 2010. New mortgages are now registered within 7 days or less, compared to 40 days in 2003, greatly improving the investment and business climate. In the former Yugoslav Republic of Macedonia, real estate cadastre coverage more than doubled, from 43 percent in 2005 to 99 percent in 2009, and the annual number of registered transactions increased by 121 percent. In the Russian Federation, the number of land plot registrations almost tripled, from 14.8 million in 2004 to 45.4 million in 2009.
International Bank for Reconstruction and Development
WORKING WITH COUNTRIES TO DELIVER BASIC SERVICES AND PROTECT THE POOR AND VULNERABLE
IBRD partners with countries to Help provide access to basic services for the whole population
In Argentina, national immunization rates increased to 94 percent by late 2009 through the provision of health insurance for the poor. In India, the average number of outpatients visiting a government hospital rose in Bihar, from 39 per month in January 2006 to 4,380 per month in October, 2008; 53 percent of the population was fully immunized by 2008, up from less than 20 percent in 2005; the number of babies delivered in health care facilities grew exponentially in 2 years, from 112,371 in fiscal 2006/07 to 780,000 in fiscal 2008/09; and medicines are now provided free to patients. In Jamaica, voluntary testing for HIV increased among youths between 2004 and 2008, from just under 30 percent to almost 47 percent. In Thailand, 1.15 million poor and vulnerable people benefited from a low-income health card scheme.
IMPROVING ACCESS TO AND QUALITY IN EDUCATION
In the state of Minas Gerais in Brazil, projects to help the government improve public services helped increase the literacy rate among 8-year-olds to 76 percent in 2009, an increase of 11 percent over 2007. In China, access to education for poor and minority children has been improved by the construction or upgrading of more than 1,500 schools, the supply of 7 million textbooks, and the training of 11,000 principals and more than 150,000 teachers. In five key provinces where IBRD has a presence, there is now universal enrollment of poor boys, girls, and ethnic minorities in primary and junior secondary schools. In Colombia, a new higher-education loan program helped students from disadvantaged backgrounds go to university; more than 175,000 students benefited from the program in 2008. In Malaysia, 33 primary schools, 26 secondary schools, 447 teachers quarters, and about 2,700 student hostel units were completed, and a vocational School To Work Program helped 2,654 underachieving secondary students in 2000. In 2004, 18,600 new student places were added by one new polytechnic institute, and upgrades to six existing insti tutes were completed. In Mexico, 6.8 million students received a better education when the Quality Schools Program grant program was increased from 21,000 to 39,000 schools in poor and very poor communities from 2006 to 2009. In Namibia, access to post-basic education and training in poor regions was increased by the creation of 60 percent more grade 11 places from 2008 to 2009. In St. Lucia, more than 2,000 additional secondary school places were provided for chil dren through the construction and rehabilitation of schools in underserved areas.
IBRD partners with countries to Protect the poor and vulnerable, including in the economic crisis
In El Salvador, 1.3 million urban public school students benefited from a school feeding program, and student enrollment increased by almost 11,000 students. The Comuni dades Solidarias conditional cash transfer program expanded from 77 municipalities to 100, helping 100,000 families.
International Bank for Reconstruction and Development
In Latvia, since 2009, an emergency public works program helped 60,000 unemployed people receive unemployment insurance benefits; 90 percent of 5-year-olds and 98 percent of 6-year-olds remain enrolled in preschool, and government assistance has ensured that even with school closures, no student need travel more than 60 minutes to get to school. In Panama, an additional 76,000 people in poor and isolated rural communities received a new nutritional component as part of a health services package in 2010. In the Philippines, better targeting of the Food for School Program reduced leakages to nonpoor students from 54 percent to 22 percent in 200809.
WORKING WITH COUNTRIES TO MEET GLOBAL CHALLENGES
IBRD partners with countries to Tackle global health challenges
In Botswana, HIV/AIDS prevention moved forward with almost 43 percent of young people 1524 years old practicing safe sex in 2010more than double the number in 2004. In the Dominican Republic, there was a tenfold increase in people 1549 years old who voluntarily took an HIV test between 2005 and 2008, and a fourfold increase in patients with sexually transmitted infections being appropriately diagnosed and treated. In Jamaica, 95 percent of pregnant women receiving antenatal care in 2007 were tested for HIV, up from 40 percent in 2002; and in 2008, 85 percent of those women were given antiretroviral treatment, up from 10 percent in 2003. Between 2004 and 2008, voluntary HIV testing among youths increased from less than 30 percent to almost 47 percent. In the Russian Federation, about 65 percent of people infected with HIV received antiretroviral treatment in 2008, up from 25 percent in 2006.
IBRD partners with countries to Meet the challenge of environmentally friendly growth
In Belarus, almost 700 schools and health facilities were retrofitted with energy-efficient windows and lighting, cutting energy use and freeing up resources for service provision. In China, 140 million tons of CO2 emissions were avoided in 2008 through new renew able energy systems, including wind farms. In the Northwestern provinces, 400,000 rural families were provided with off-grid solar power systems during the last decade, and since 2008, some 3.7 million people have benefited from expanded coverage of waste water service in Anhui and Shandong provinces. In Croatia, improved wastewater collection and treatment and strengthened environmen tal monitoring benefited 146,000 residents and 225,000 tourists in 2010. In the Dominican Republic, electricity losses were cut by 14 percent during 200508 under a regional Caribbean project on secure and clean energy. In Ecuador, 1,741 more households received electricity from solar home systems in 2008. In Mexico, 250,000 rural people in the poorest regions of the country received electricity through solar home systems. In Vietnam, new energy efficiency standards were introduced for energy-intensive con sumer goods.
International Bank for Reconstruction and Development
IBRD partners with countries to Help countries be prepared for future crises, including natural disasters
In China, strengthening the Yangtze River dikes protected about 75 million people and more than 1.6 million hectares of farmland from flood damage in December 2008. In Colombia, 1.7 million families benefited from the Familias en Accin conditional cash transfer program in 2008, up from 340,000 families in 2004. In St. Vincent and the Grenadines, extensive training of staff and the purchase of emergency and communications equipment has increased the governments disaster response capacity.
IBRD COMMITMENTS FOR SOCIAL PROTECTION AND RISK WERE AT $3.3 BILLION LAST YEAR
During scal 200509, IBRD helped develop, deepen, and expand the conditional cash transfer (CCT) model, approving 16 projects in 10 countries, mainly in Latin America and the Caribbean (LAC), with more recent projects branching out to East Asia and to Eastern Europe. In scal 2009, several of the LAC CCT programs were expanded to protect the most vulnerable from the impact of the global nancial crisis; IBRD provided close to US$2.5 billion to help LAC countries respond to the crisis.
WORKING WITH COUNTRIES TO STRENGTHEN GOVERNANCE
IBRD partners with countries to Strengthen governance and the management of public money
IBRD supports countries in their efforts to build the systems, institutions, and processes for more efcient and transparent public nancial management In Chile, an integrated financial management system implemented in 159 central government agencies facilitated budget execution within set deadlines, and a robust performance-based monitoring and evaluation system for expenditure management was introduced in 178 government agencies. In Indonesia, the institutional framework for addressing corruption was significantly strengthened by the establishment in 2007 of the Anti-Corruption Commission, the Anti-Corruption Court, the Judicial Commission, the Police Commission, and the Prosecutorial Commission. In Jordan, access to justice was improved with the creation of the first pro bono lawyers association by the Jordan Center for Legal Aid, in coordination with the Jordan Bar Asso ciation, which provides citizens with access to a system of one-stop shops for legal aid, legal counseling, and higher quality judicial services. In Serbia, public financial management was strengthened by the introduction of a compre hensive and integrated medium-term planning and budgeting framework, and by new laws to enhance the management, oversight, transparency, and accountability of procurement. In the Slovak Republic, significant improvements in its macro-fiscal forecasting capacity helped provide a starting point for preparing the annual budget. In South Africa, reforms to budgeting and financial management systems were imple mented in 41 municipalities.
World Bank Results at a Glance iPhone App
World Bank Results at a Glance is a free app that highlights 450+ World Bank result profiles across more than 85 countries over the last decade. For more information, go to bit.ly/wbresultsapp.
For more information on The World Bank, please visit http://www.worldbank.org; for more informa tion on the World Bank and results, please visit http://www.worldbank.org/results. April 2011
